Reform UK proposes tax rebates for firms to boost apprenticeships

Reform UK has proposed tax rebates for businesses that hire young apprentices aged 16 to 18, in a bid to boost apprenticeship numbers and skills development in the country. Education spokeswoman Suella Braverman outlined the party's plan, which includes offering a 30% rebate on the wages of apprentices taken on by small and medium-sized businesses. Braverman also advised students receiving their GCSE results not to pursue a university education, suggesting instead that they consider learning a trade.

Prime Minister Andy Burnham has expressed his desire for teenagers to have technical routes into careers that could be as valuable as a traditional university degree. To encourage more young people into work, the government has introduced measures such as providing up to £4,500 a year to parents on benefits to support their children in starting apprenticeships.

Reform UK's proposal is part of a series of plans aimed at increasing the number of apprenticeship starts to 600,000 per year by the end of the next Parliament, likely to be 2034.

The policy would be funded by banning foreign students from accessing taxpayer-funded loans and stopping what Reform UK calls "Mickey Mouse degrees." The policy, which includes a £2,000 retention bonus for apprentices, could cost between £1.48bn and nearly £2bn over five years. Braverman emphasized that there are too many graduates with qualifications that don't match the skills needed in the country, arguing that learning a trade would be a better use of their time.

Apprentices generally receive lower wages but benefit from on-the-job training and practical work experience. Braverman stated that the apprenticeship wage credit would result in businesses saving an average of £4,000 per apprentice annually. When asked if the policy could lead to some universities closing, Braverman suggested that universities need to repurpose themselves into construction and manufacturing colleges.

She criticized certain degree programs, such as gender studies and golf course studies, as not having a necessity or value.

Reform UK's proposal is part of a broader effort to address the issue of young people not being in employment, education, or training (Neets). Former minister Alan Milburn has been tasked with investigating the reasons behind this phenomenon. The Conservative shadow education secretary, Laura Trott, acknowledged the demand for apprenticeships but criticized the Labour government for not doing enough to boost their supply, suggesting that investing in apprenticeships could provide school leavers with more choices.